WASHINGTON — The National Association of Manufacturers (NAM) and the American Council for Capital Formation (ACCF) unveiled a jointly commissioned study assessing the potential national and state economic impacts resulting from proposed climate change legislation.
America's Climate Security Act of 2007 (S. 2191) is authored by Senators Joseph Lieberman and John Warner. It aims to reduce total U.S. greenhouse gas emissions 63 percent below their 2005 levels by the year 2050. The Senate is expected to debate the legislation in June 2008.
Science Applications International Corporation (SAIC) conducted the independent study examining the implications of the legislation with respect to Gross Domestic Product (GDP) and Gross State Product, future energy costs, economic growth, employment, production, household income, the impact on low income earners and other measurements.
The report concluded that the legislation, if passed into law, would have a profound economic impact on U.S. businesses, consumers and governments nationally and in all 50 states.
Some of the findings include:
- GDP losses of $151 to $210 billion in 2020 and $631 to $669 billion per year in 2030
- Employment losses of 1.2 to 1.8 million jobs in 2020 and 3 to 4 million jobs in 2030
- Household income losses of $739 to $2927 per year in 2020 and $4022 to $6752 per year in 2030
- Electricity price increases of 28 to 33 percent by 2020 and 101 to 129 percent by 2030
- Gasoline price increases (per gallon) of 20 to 69 percent by 2020 and 77 to 145 percent by 2030
"This is a sobering view of economic and social costs of action with respect to this legislation," said John Engler, President of the NAM. "The goal of this study was to provide policymakers and the public a better understanding of the costs such public policies would impose on our national and state economies, as well as the direct implications for U.S. business and households."
"While the environmental impact of climate change is still under scientific analysis, the economic implications of the proposed legislation are quite evident in view of this report," said Dr. Margo Thorning, senior vice president and chief economist of the American Council on Capital Formation.
To see a copy of the report, click here.
